LONDON (Alliance News) - Shares in Filtronic dropped 23% Monday after it warned that its Wireless division will post an operating loss in the second half due to order delays.
Shares in Filtronic were trading down 23% at 37.56 pence Monday morning.
The company said that revenue in its Wireless business is expected to be around 60% lower than the first half, as a number of potentially large projects were delayed beyond the end of its year end, and activity levels continued to be hit by the shift towards the new fast speed 4G standard.
Filtronic said expects the Wireless business to post a small operating loss for the half year as a result.
In its Broadband division, the company said the operating loss is expected to be slightly lower than in the first half, and underlying sales are expected to be at a similar level, and revenue will be boosted by a last-time buy on one legacy customer programme. The division completed its exit from its legacy business, Filtronic said.
Despite the weakness in the Wireless division, Filtronic said it expects the group overal to be broadly break even at the operating profit level for the full year.
It also said prospects for the financial year 2015 are positive. It said the deferred revenue in the Wireless business is expected to be secured in 2015.
Filtronic also noted that it was engaged in some potentially very large infrastructure projects, although it said that the degree and timing of its participation is uncertain until the contracts are finalised.
Filtronic said it will announced results for the full year ending May 31 in July.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Filtronic (FTC)